Asset management Stanlib’s Infrastructure Fund II, which invests in infrastructure projects including renewable energy, transportation infrastructure, and logistics, is acquiring a 60% stake in a 285 megawatt (MW) solar power plant in Upington for more than R1 billion.
The deal will see Stanlib acquire a 45% stake from Scatec for R979 million and an additional 18% stake from Norfund, for an undisclosed amount.
The deal, which is subject to customary approvals, is expected to close within the first of 2023.
The Upington solar farm, operated by Oslo-based Scatec, began operation in 2020 and is estimated to generate about 650 gigawatt hours (GWh) of power annually, which is sufficient to power about 120 000 households and save about 600 000 tons of CO2 emissions a year.
Greg Babaya, head of infrastructure investments at Stanlib, said the investment would foster economic growth, which is significant as South Africa faces worsening supply problems.
Stanlib Infrastructure Investments, over its decade long history, has invested in 27 projects and currently has R11 billion in assets under management.